Operating Capital (Noun)
Meaning
Capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's operating capital increased significantly after receiving a major order from a key client, allowing it to expand production.
- To stay competitive, the manufacturing firm had to allocate sufficient operating capital to invest in new equipment and technology.
- Poor cash flow management led to a significant decline in the company's operating capital, making it difficult to meet its day-to-day expenses.
- Investors were concerned that the company's low operating capital reserves would limit its ability to respond to unexpected changes in the market.
- The startup secured a significant amount of operating capital from venture capitalists to support its growth and expansion plans.